• Government proposes to give one more year to manufacturing companies proposing to start production from their new greenfield facilities and qualify for lower corporate tax rate of 15 per cent.
  • As the government continues to focus on increasing the share of renewable energy in the country, nearly 15,000 MW of wind-solar hybrid capacity is expected to come up over the next five years, CRISIL said. Out of this 15,000 MW, works on nearly 10,000 MW are already either under construction or are being tendered and are expected to start feeding the grid by fiscal 2024.
  • The government said that fuel linkages from coal companies have been rationalised to reduce the distance in transportation of coal from the mines to users. The move is aimed at reducing the load on the transportation infrastructure and easing the evacuation constraints. Unlike the past rationalisation exercises, the present methodology on linkage rationalisation, covers the power as well as non-regulated sector (NRS), for all types of consumers, the coal ministry said.
  • The Coal Ministry has approved swapping of coal across coal consumers from public sector, private sector and across domestic coal linkage and imported coal. The underlying objective behind the exercise is to rationalize coal transportation by easing the evacuation constraints and effect a consequential reduction in landed cost of coal, the coal ministry said.
  • Demand for steel in India is unlikely to recover till the third quarter of this fiscal, according to a survey by credit ratings agency Crisil. Nearly 60% of the respondents said they expected demand to recover from the third quarter, as infrastructure and construction activities gather pace, migrant workers return to work, and the fiscal measures taken by the government improve availability of funds.
  • India’s economy will shrink by 3.2% in the current fiscal, the World Bank said. However, the Indian economy is expected to bounce back in 2021. In India, growth is estimated to have slowed to 4.2% in the fiscal year 2019-20 and output is projected to contract by 3.2% in fiscal year 2020-21, when the impact of COVID-19 will largely materialise.
  • Moody’s Investors Service, Fitch Rating and S&P Global Ratings have all predicted a 4-5% contraction in India’s economic growth rate during April 2020 to March 2021 fiscal.